I Bought The Gadgets, Where’s the Payback?

Mar 12, 2015

2015 Precision Agriculture Conference Breakout Session Session

The thought of precision agriculture is still new to many farmers and producers, and many who are using precision agriculture tools are looking for the payback. A large number of farmers and producers haven’t adapted precision agriculture into their businesses due to the number of unanswered questions, such as what resources and tools are needed to get maximum results? How will using precision agriculture tools help me make good business decisions, as well as where and when will I see a return on investment?

At the early morning breakout session at the 2015 Precision Agriculture Conference held in London, Ontario, February 26^th, Tim Little, Precision Ag Specialist in Growmark addressed the audience and their questions about where they can expect to see the payback in relation to precision agriculture.

Since 2008 Little has been working with Growmark, based out of its Caledonia, New York, location as the Sales & Operations Manager. The audience at the breakout session was a mixed crowd, with close to one third already using precision agriculture technologies. To discuss options on how to get the most out of precision agriculture tools, Little talked about the 4Rs principal.

4Rs Principal

Right Source (such as matching fertilizer type to crop needs, etc.)
Right Rate (such as soil samples, mapping, etc.)
Right Time (such as climate, rain, etc.)
Right Place (such as keeping nutrients where the crops can use them, etc.)

After discussing the 4Rs with the audience, Little asked the question “Should there be 5Rs?,” the fifth R being the right tools (having the right tools, and using them to make good business decisions).

Growmark works with Agrinetix, a precision agriculture technology company, to help producers get the most out of precision agriculture tools, which should lead to a return on investment for farmers. Little explained that doing what needs to done, when it needs to be done is one of the main benefits and challenges related to adopting precision agriculture techniques.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.